Major U.S. stock indices closed lower on Thursday. The S&P 500 reached an intraday record high of 7,147.78 points. Former President Donald Trump announced that a ceasefire agreement between Israel and Lebanon has been extended for three weeks following a meeting he hosted at the White House with representatives from both nations. Trump stated on his Truth Social platform that the meeting "went very well" and that the U.S. would cooperate with Lebanon to help defend against threats from Hezbollah. The original 10-day ceasefire, agreed upon last week, was set to expire imminently.
In market action, the Dow Jones Industrial Average fell by 179.71 points, or 0.36%, to close at 49,310.32. The Nasdaq Composite dropped 219.06 points, or 0.89%, ending at 24,438.50. The S&P 500 declined by 29.50 points, or 0.41%, finishing at 7,108.40. Shares of Tesla (TSLA.US) decreased by 3.5%, while NVIDIA (NVDA.US) fell over 1%. Intel (INTC.US) saw its shares surge nearly 20% in after-hours trading following its earnings report. The Nasdaq Golden Dragon China Index closed down 2.4%, with TAL Education Group (TAL.US) falling 9% and Alibaba (BABA.US) declining over 3%.
In European markets, Germany's DAX index fell 59.23 points, or 0.24%, to 24,151.00. Britain's FTSE 100 dropped 21.68 points, or 0.21%, to 10,454.78. France's CAC 40 gained 70.89 points, or 0.87%, to 8,227.32. The Euro Stoxx 50 decreased by 14.16 points, or 0.24%, to 5,892.06. Spain's IBEX 35 fell 140.35 points, or 0.78%, to 17,866.05. Italy's FTSE MIB rose 106.04 points, or 0.22%, to 47,891.50.
In Asia, Japan's Nikkei 225 declined by 0.75%, while South Korea's KOSPI index rose 0.9%.
In cryptocurrencies, Bitcoin fell 0.77% to $77,993.36. Ethereum dropped over 3% to $2,326.70.
Oil prices climbed. The June contract for West Texas Intermediate crude rose by $2.89 to settle at $95.85 per barrel, a gain of 3.11%. The June contract for Brent crude increased by $3.16 to close at $105.07 per barrel, up 3.1%.
Precious metals saw declines, with spot gold falling below the $4,700 mark to settle at $4,693.02 per ounce. Spot silver was at $75.434 per ounce.
On the macroeconomic front, U.S. initial jobless claims saw a slight increase, suggesting limited layoffs. Claims for the week ending April 18 rose by 6,000 to 214,000, compared to a market forecast of 210,000. The number of continuing claims increased to 1.82 million. Despite the rise, initial claims remain near their lowest levels since last year, aligning with other data indicating a stabilizing labor market. A late March poll indicated that approximately half of employed Americans fear job loss, although claims data has not yet shown a significant increase in layoffs.
U.S. business activity rebounded in April, though the conflict with Iran pushed output prices higher. The S&P Global Composite PMI Flash Index rose to 52.0 in April from 50.3 in March, which was its lowest level since September 2023. The improvement was primarily driven by the manufacturing sector, fueled by what S&P Global described as "inventory accumulation amid concerns about supply availability and price increases." The Manufacturing PMI increased to 54.0 from 52.3, hitting a 47-month high and exceeding economist expectations of 52.5. The New Orders Index rose to 54.8 from 52.3. The Services PMI increased to 51.3 from 49.8, which had marked its first contraction since January 2023.
Iran's Foreign Ministry stated that the focus of negotiations has shifted from nuclear issues to achieving a complete end to the war. A spokesperson confirmed that Parliament Speaker Mohammad Bagher Ghalibaf would lead the Iranian delegation in Islamabad, noting his extensive experience and ability to coordinate domestic political forces. The spokesperson clarified that nuclear issues are no longer the main subject, with the priority now being a full ceasefire and safeguarding core national interests. Shortly before this statement, Israeli sources reported that Ghalibaf had resigned from the negotiation team due to involvement by the Islamic Revolutionary Guard Corps.
The Trump administration is planning to extend a shipping waiver that permits foreign-flagged tankers to transport oil and gasoline between U.S. ports. This move aims to address supply disruptions and price increases stemming from the conflict with Iran. A decision on continuing the exemption from the Jones Act could be announced as early as Friday. The current waiver is set to expire on May 17. An extension could provide relief for U.S. refiners beginning to book July waterborne shipments. The duration and scope of the potential extension remain unclear.
In corporate news, Intel (INTC.US) reported first-quarter revenue that exceeded expectations, driven by a resurgence in demand for its core CPU products amid the AI boom. First-quarter sales were $13.6 billion, up 7% year-over-year and surpassing analyst estimates by 11%. The company raised its second-quarter sales forecast to a range of $13.8 billion to $14.8 billion, above the consensus estimate of $13 billion. CEO Pat Gelsinger stated that the next wave of AI, shifting from foundational models to inference and agents, is significantly increasing demand for the company's CPUs, chips, and advanced packaging.
Regarding analyst ratings, BNP Paribas lowered its price target for AT&T (T.US) to $26 from $28. UBS Group raised its price target for Amazon (AMZN.US) to $304 from $301, increased its target for Tesla (TSLA.US) to $364 from $352, and raised its target for Texas Instruments (TXN.US) to $295 from $260.
